The Good, the Bad, and the Ugly of Owning A Moving and Storage Franchise

March 1, 2023

Moving and storage franchises are businesses that provide storage solutions and moving services to customers. Owning a franchise can be an attractive option for those who want to be their own boss while benefiting from the support of an established brand. However, as with any business venture, there are both advantages and disadvantages to consider before investing in a moving and storage franchise.

Pros of Owning a Moving and Storage Franchise

  1. Established Brand Recognition: Owning a franchise comes with the benefit of an established brand and reputation. This can help attract customers who are familiar with the franchise and trust the brand.
  2. Training and Support: Franchise owners often receive training and ongoing support from the franchisor. This can include marketing support, operational support, and ongoing training to help the business grow and succeed.
  3. Marketing and Advertising: Franchisors often provide marketing and advertising support to help promote the franchise and attract customers. This can include national advertising campaigns and local marketing initiatives.
  4. Business Model: Franchises typically come with a proven business model that has been successful for other franchisees. This can help new franchise owners get off to a strong start and increase their chances of success.
  5. Access to Technology and Resources: Franchisees often have access to the latest technology and resources to help them run their business efficiently. This can include software, equipment, and other tools that may be too expensive for a small business owner to purchase on their own.

Cons of Owning a Moving and Storage Franchise

  1. Initial Investment: Owning a franchise can require a significant initial investment. This can include the cost of the franchise fee, equipment, supplies, and other expenses associated with starting a business.
  2. Royalty Fees: Franchisees typically pay ongoing royalty fees to the franchisor. These fees can be a percentage of the franchisee’s sales or a flat fee, and can add up to a significant expense over time.
  3. Limited Flexibility: Franchisees are typically required to follow strict guidelines and procedures set by the franchisor. This can limit the franchisee’s ability to make decisions and operate the business as they see fit.
  4. Limited Territory: Franchisees may be restricted to a specific geographic territory, which can limit their customer base and growth potential.
  5. Competition: Franchisees may face competition from other franchisees within the same brand, as well as from other moving and storage companies in the same market.

Owning a moving and storage franchise can be a great opportunity for entrepreneurs who want to be their own boss while benefiting from the support of an established brand. However, it’s important to carefully consider the pros and cons before making the investment. Franchisees should weigh the benefits of established brand recognition, training and support, marketing and advertising, proven business models, and access to technology and resources against the initial investment, ongoing royalty fees, limited flexibility and territory, and competition.

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